Production Upgrade

21 Sep 2006 07:01

Griffin Mining Ld21 September 2006 GRIFFIN MINING LIMITED 60 St James's Street, London SW1A 1LE, United Kingdom Telephone: + 44 (0)20 7629 7772 Facsimile: + 44 (0)20 7629 7773 E mail: griffin@griffinmining.com 21st September 2006 PRODUCTION UPGRADE AT CAIJIAYING CONTINUING RISE IN CASH BALANCE Griffin Mining Limited ("Griffin" or the "Company") is pleased to announce thatit has increased throughput at Caijiaying from 35 tonnes of ore per hour firstachieved in May 2006 to 42 tonnes of ore per hour (the equivalent of 350,000tonnes per annum) and maintained that increase for an extended period of timewhilst maintaining recovery and plant utilisation rates. In addition, evenhigher throughputs have been achieved on an ad hoc basis. The 350,000 tonne per annum throughput is 75% over the original design capacityof the plant with a 20% increase in zinc metal in concentrate being produced.The increased throughput capacity reduces operating costs per tonne and allows alower mining cut-off grade to be applied whilst optimising and extending thecurrent known life of the zone III deposit. A new reserve and resource statementis expected by the end of the calendar year. Work continues on the feasibility study for the potential upgrade of theCaijiaying zinc and gold processing plant to take annualised throughput to500,000 tonnes per annum and cater for a new planned precious metals concentratewhich is expected to recover both gold and silver, a decision which is expectedto be made by the end of the calendar year. Cash balances in the Griffin Group currently stand at some US$22 million and theCompany retains no debt. Chairman's statement "Caijiaying continues to outperform almost everyone's expectations and willcontinue to excite and surprise the market and its shareholders. I anticipateeven more significant results as the year continues." Further information Mladen Ninkov - Chairman Telephone: +44(0)20 7629 7772Roger Goodwin - Finance DirectorGriffin Mining Limited Adrian Hadden / Christopher Rollason Telephone: +44(0)20 7523 8350Collins Stewart Limited Hugo de Salis Telephone: +44(0)20 7242 4477St Brides Media & Finance Ltd Griffin Mining Limited's shares are quoted on the Alternative Investment Market (AIM) of the London Stock Exchange (symbol GFM). The Company's news releases are available on the Company's web site: www.griffinmining.com This information is provided by RNS The company news service from the London Stock Exchange